2018 medicine sector first rises and then swells, ushered in a long period of value regression

2018 is about to pass, what is the performance of the pharmaceutical stock market this year? Industry analysts believe that the first promotion is the key word to describe the overall performance of the pharmaceutical stock market this year. Specifically, in the first year of 2018, the overall market for pharmaceutical stocks continued to rise, becoming one of the most eye-catching industries in the entire stock market.

However, after hitting the high point at the end of May, the pharmaceutical stocks began to adjust downwards, coupled with the incident of catching up the production record of the longevity biological vaccine, the pharmaceutical stocks were hit hard and continued to lead. The industry said, "This mood seems to have taken a roller coaster ride and ushered in a cold winter."

As one of the defensive varieties, the pharmaceutical sector showed a gain of 3.67% in the first half of the year. As of July 15, the better-performing pharmaceutical fund scored 37%. However, in the second half of the year, the pharmaceutical sector, which was smooth and smooth, suffered a vaccine incident and was half-way.

The cold winter did not seem to have the meaning of the past. When the medical sector improved slightly, at the end of the year, the “4+7” quantity purchase gave a heavy blow. In December, “4+7” purchases led to a decline in many pharmaceutical stocks. In the seven trading days, pharmaceutical funds fell by an average of over 10%.

At the same time, driven by the new policy of medical reform, such as consistency evaluation and quantity procurement, the generics sector has ushered in greater challenges and the industry has accelerated its reshuffle. After the HKEx threw an "Olive Branch" to an unprofitable biopharmaceutical company, the pharmaceutical companies listed in Hong Kong also ushered in a "profit" exam.

In response to the performance of the pharmaceutical sector this year, an industry insider said that this year, the pharmaceutical market has unexpected surprises, there are also flying disasters, and there are developments beyond expectations. Others use "black swan" and "roller coaster" as keywords. “After looking back for a year, the medical sector has gone around and seems to be back to the original point.”

After the decline, the pharmaceutical stock market will usher in a long period of value return. In the long run, the implementation of quantity procurement will reduce the price of terminal drugs, and will also promote the competition of generic drugs from channel to cost, and promote the pharmaceutical industry to develop better on the road of innovation.

In addition, the current situation of heavy sales and light development will be changed. This is not a bad thing for innovative pharmaceutical companies with increasing R&D investment. In addition, from a short-term perspective, the pressure on the pharmaceutical sector is still there.

Some pharmaceutical industry fund managers said: "Now it is equivalent to returning to the original point. Reviewing the events and policies introduced this year, this time more important is the layout for next year."

Because when the market is more scared, it is actually a good opportunity to re-lay the pharmaceutical sector. Many stocks have fallen by about 40% from the high level. Compared with other industries, next year's performance is very uncertain, the pharmaceutical sector is relatively certain. The performance has become a scarce factor.

However, the pharmaceutical sector also had an unexpected surprise, that is, the first half of the year exceeded expectations. The medical fund manager said: "At the beginning of the year, the SSE 50 was much higher than the pharmaceutical sector. At that time, it was still a little anxious." Until the Spring Festival, the market had a style switch, switching from the blue chip to the growth of medicine and high-tech. The pharmaceutical fund has started to rise against the trend.

Although many industry people foresee the rise of the pharmaceutical sector in the first half of the year, it is still an unexpected surprise. In the first quarter, the pharmaceutical sector has a revenue growth of around 30%, mainly due to the impact of special influenza epidemics and product price increases. And about 32% of the profit growth far exceeds everyone's expectations.

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